Listen to this article
Is the Ageas Federal Easy Save Plan truly an “easy” path to financial security — or just a traditional policy dressed in simple language?
Is Ageas Federal Easy Save Plan suitable for first-time investors — or too conservative for those seeking higher returns?
Can Ageas Federal Easy Save Plan actually help you build meaningful savings — or will inflation quietly erode the value of its benefits over the long term?
In this review, we examine the Ageas Federal Easy Save Plan, a traditional insurance-cum-savings product, to evaluate its relevance within your portfolio. This analysis covers the plan’s key features, benefits, and limitations, and includes a detailed illustration to assess its overall suitability.
Table of Contents:
What is the Ageas Federal Easy Save Plan?
What are the features of the Ageas Federal Easy Save Plan?
Who is eligible for the Ageas Federal Easy Save Plan?
What are the benefits of the Ageas Federal Easy Save Plan?
Grace Period, Discontinuance and Revival of the Ageas Federal Easy Save Plan
Free Look Period for the Ageas Federal Easy Save Plan
Surrendering the Ageas Federal Easy Save Plan
What are the advantages of the Ageas Federal Easy Save Plan?
What are the disadvantages of the Ageas Federal Easy Save Plan?
Research Methodology of Ageas Federal Easy Save Plan
Benefit Illustration – IRR Analysis of Ageas Federal Easy Save Plan
Ageas Federal Easy Save Plan Vs. Other Investment
Ageas Federal Easy Save Plan Vs. Pure-term + PPF/Equity Mutual Fund
Final Verdict on Ageas Federal Easy Save Plan
What is the Ageas Federal Easy Save Plan?
Ageas Federal Easy Save Plan is a Non-Linked, Non-Participating, Individual, Savings, Life Insurance Plan.
The plan offers guaranteed benefits through two convenient options — Lump sum, which ensures a secure payout at the end of the term and Income, which provides a guaranteed regular income.
What are the features of the Ageas Federal Easy Save Plan?
- Offers a choice between two plan variants – Lump Sum and Income options.
- Provides a Guaranteed Income Benefit, payable annually either from the first policy year or after completion of the 5th policy year, throughout the policy term (as per the selected option).
- Includes a Smart Lady Benefit Option, under which an additional benefit is payable at maturity for female lives, along with the flexibility to opt for multiple life covers.
- Offers the ability to enhance coverage through optional rider(s) at an additional cost.
- Tax benefits on premiums paid and benefits received may be available, subject to prevailing tax regulations.
Who is eligible for the Ageas Federal Easy Save Plan?
| Minimum | Maximum | |
| Entry Age | 0 years (91 days) | 60 years |
| Maturity age | 18 years | 80 years |
| Policy Term | Lumpsum – 10 years Income (Deferment Period – 0 years) – 15 years Income (Deferment Period – 5 years) – 10 years |
20 years |
| Policy Term & Premium Paying Term | Policy Term | Premium Paying Term |
| 10 years | 5 years | |
| 15 years | 7 years, 10 years | |
| 20 years | 10 years, 12 years | |
| Premium | Yearly: Rs. 50,000 Half Yearly: Rs. 25,500 Monthly: Rs. 4,500 |
No limit, subject to BAUP |
| Premium Payment Mode | Yearly, Half Yearly, Monthly | |
| Income Payout frequency | NA for lump sum benefit Yearly, Half Yearly, Quarterly, Monthly |
|
| Sum Assured | Entry Age >= 50 Years: Rs. 2,50,000 Entry Age < 50 Years: Rs. 3,50,000 |
No limit (subject to board underwriting policy) |
What are the benefits of the Ageas Federal Easy Save Plan?
1. Survival Benefit
Lump Sum Variant: Not Applicable
Income Variant:
Guaranteed Regular Income (GRI) shall be payable every year during the Ageas Federal Easy Save Plan policy term as per the chosen Deferment Period and the Income Payout Frequency.
Income payments will commence either from the 1st Policy Year (in case of 0-year deferment) or from the 5th Policy Year (in case of 5-year deferment), as opted by you at inception.
GRI is defined as: GRI Factor * Annualised Premium
| PPT | Term | Deferment – 0 | Deferment – 5 |
| 5 | 10 | Not Applicable | 20% |
| 7 | 15 | 15% | 20% |
| 10 | 15 | 15% | 20% |
| 10 | 20 | 20% | 25% |
| 12 | 20 | 20% | 25% |
2. Death Benefit
Lump Sum Variant: On the death of Life Assured during the Ageas Federal Easy Save Plan policy term, Death Benefit shall be payable as lumpsum, provided the policy is in force, and all Premiums due till date have been paid. Death Benefit shall be the higher of:
- Sum Assured on Death + Sum of Accrued Guaranteed Additions
- Life Cover Multiple x Annual Premium + Sum of Accrued GA(s)
Life Cover Multiple is as follows:
- For Entry Age >= 50 years: 5 or 10
- For Entry Age < 50 years: 7 or 10
Income Variant:
On the death of Life Assured during the Ageas Federal Easy Save Plan policy term, the Death Benefit shall be payable as lumpsum, provided the policy is in force, and all Premiums due till date have been paid. Death Benefit shall be the higher of:
- Sum Assured on Death,
- Life Cover Multiple x Annual Premium
Life Cover Multiple is as follows:
- For Entry Age >= 50 years: 5 or 10
- For Entry Age < 50 years: 7 or 10
3. Maturity Benefit
Lump Sum Variant: Maturity Benefit shall be payable as lumpsum at the end of the policy term, provided the Ageas Federal Easy Save Plan policy is in force, and all Premiums due till date have been paid.
Maturity Benefit is defined as: Sum Assured on Maturity + Sum of Accrued GA(s) + Smart Lady Benefit (if applicable)
Where, Sum Assured on Maturity is Maturity Booster Factor * Annualised Premium * Premium Payment Term.
Guaranteed Addition(s) shall accrue at the end of each policy year during the policy term, if all premiums due till date have been paid.
Guaranteed Addition (GA) = GA Rate (6%) x Total Annualised Premium paid till date.
Income Variant:
On survival of the Life Assured till the end of the policy term, the following Maturity Benefit shall be payable, provided the policy is in force till that date.
Maturity Benefit shall be payable as lumpsum at the end of the Ageas Federal Easy Save Plan policy term.
Maturity Benefit is defined as: Sum Assured on Maturity + Smart Lady Benefit (if applicable).
Where, Sum Assured on Maturity = Maturity Booster Factor* Annualised Premium*Premium Payment term
Grace Period, Discontinuance and Revival of the Ageas Federal Easy Save Plan
Grace Period
You get a grace period of 30 days for Yearly and Half-Yearly mode and 15 days for Monthly mode from the date of the first unpaid premium.
Discontinuance
Lapse: In case of non-payment of due Premiums within the grace period for the first full policy year, the policy shall lapse, and no benefits are payable.
Paid-up: After completion of the first policy year, provided one full year’s premium has been received, in case of non-payment of due Premiums within the Grace Period, the policy shall be made paid-up with reduced benefits. All the benefits will be reduced proportionately to the premiums paid.
Revival
A policy in lapse or paid-up status may be revived within five consecutive complete years from the due date of the first unpaid Premium.
Free Look Period for the Ageas Federal Easy Save Plan
You are entitled to a free look period of 30 days beginning from the date of receipt of the policy document (whether received electronically or otherwise), to review the terms and conditions of the policy.
In case you do not agree to any of the policy terms and conditions, or otherwise and have not made any claim, you have the option to return the policy.
Surrendering the Ageas Federal Easy Save Plan
The Surrender Value shall become available after completion of the first policy year, provided one full year’s premium has been received. Surrender Value = Maximum [Guaranteed Surrender Value (GSV), Special Surrender Value (SSV)]
What are the advantages of the Ageas Federal Easy Save Plan?
- A policy loan facility is available, with the maximum loan amount capped at 75% of the Guaranteed Surrender Value.
- Coverage can be strengthened during the policy term by opting for additional rider(s), subject to applicable terms and conditions.
- All benefits payable under the plan are guaranteed, as per the policy provisions.
- The Smart Maturity Payout feature enables receipt of the Maturity Benefit in instalments after the policy term concludes, instead of a one-time payout.
What are the disadvantages of the Ageas Federal Easy Save Plan?
- Although the plan offers guaranteed benefits, the overall returns are comparatively modest.
- Survival benefits under the Income variant may inadvertently lead to discretionary spending instead of disciplined long-term wealth accumulation.
- The sum assured is inadequate
Research Methodology of Ageas Federal Easy Save Plan
Before committing to any financial product, assessing the expected rate of return is critical to determine whether it aligns with your long-term objectives.
To evaluate the Ageas Federal Easy Save Plan, let us compute its effective return using the Internal Rate of Return (IRR) methodology, based on the illustration provided in the policy brochure.
Benefit Illustration – IRR Analysis of Ageas Federal Easy Save Plan
A 35-year-old male invests ₹1,00,000 annually in this plan, selecting a 10-year Premium Payment Term and a 20-year Policy Term, with a sum assured of ₹10 lakhs under the Lump sum Option.
| Male | 35 years |
| Sum Assured | ₹ 10,00,000 |
| Policy Term | 20 years |
| Premium Paying Term | 10 years |
| Annualised Premium | ₹ 1,00,000 |
At maturity, the policyholder receives the Guaranteed Sum Assured along with accrued Guaranteed Additions, resulting in a total payout of ₹25.20 lakhs.
Based on these cash flows, the Internal Rate of Return (IRR) works out to 6.05% per annum as the Ageas Federal Easy Save Plan maturity calculator.
| Age | Year | Annualised premium / Maturity benefit | Death benefit |
| 35 | 1 | -1,00,000 | 10,00,000 |
| 36 | 2 | -1,00,000 | 10,00,000 |
| 37 | 3 | -1,00,000 | 10,00,000 |
| 38 | 4 | -1,00,000 | 10,00,000 |
| 39 | 5 | -1,00,000 | 10,00,000 |
| 40 | 6 | -1,00,000 | 10,00,000 |
| 41 | 7 | -1,00,000 | 10,00,000 |
| 42 | 8 | -1,00,000 | 10,00,000 |
| 43 | 9 | -1,00,000 | 10,00,000 |
| 44 | 10 | -1,00,000 | 10,00,000 |
| 45 | 11 | 0 | 10,00,000 |
| 46 | 12 | 0 | 10,00,000 |
| 47 | 13 | 0 | 10,00,000 |
| 48 | 14 | 0 | 10,00,000 |
| 49 | 15 | 0 | 10,00,000 |
| 50 | 16 | 0 | 10,00,000 |
| 51 | 17 | 0 | 10,00,000 |
| 52 | 18 | 0 | 10,00,000 |
| 53 | 19 | 0 | 10,00,000 |
| 54 | 20 | 0 | 10,00,000 |
| 55 | 25,20,400 | ||
| IRR | 6.05% |
From a financial planning perspective, a long-term investment spanning 20 years should ideally generate returns that comfortably exceed inflation to preserve and grow purchasing power.
An IRR of 6.05% over such an extended tenure is relatively modest and may struggle to create meaningful real wealth after adjusting for inflation.
Further, a ₹10 lakh sum assured may not be sufficient to provide comprehensive financial protection for a family, especially when factoring in future liabilities, lifestyle expenses, and goal-based funding requirements.
While the plan provides guaranteed benefits, its return profile and insurance coverage appear inadequate for robust wealth creation and meaningful risk protection.
Therefore, allocating funds to the Ageas Federal Easy Save Plan may not effectively help in building the required corpus or ensuring adequate financial security.
Ageas Federal Easy Save Plan Vs. Other Investment
The returns generated by the Ageas Federal Easy Save Plan are relatively modest, even when compared to traditional debt instruments.
For long-term wealth creation, investors require return-generating avenues that can outpace inflation and meaningfully support goal achievement.
Additionally, the life coverage provided under the plan is inadequate when assessed against standard protection benchmarks.
A more efficient strategy is to separate insurance and investment, while retaining the same financial assumptions used in the earlier example.
Ageas Federal Easy Save Plan Vs. Pure-term + PPF/Equity Mutual Fund
A pure-term life insurance policy with a ₹10 lakh sum assured costs ₹7,500 annually for a 20-year term, with a 10-year premium payment term.
By opting for this, you can save ₹92,500 annually, which can be invested based on your financial goals and risk appetite.
| Pure Term Life Insurance Policy | |
| Sum Assured | ₹ 10,00,000 |
| Policy Term | 20 years |
| Premium Paying Term | 10 years |
| Annualised Premium | ₹ 7,500 |
| Investment | ₹ 92,500 |
Investment choices should align with individual risk tolerance. High-risk investors can opt for equity instruments like an equity mutual fund, while risk-averse investors can choose safer options like PPF. Here’s how both scenarios compare:
| Term Insurance + PPF | Term insurance + Equity Mutual Fund | ||||
| Age | Year | Term Insurance premium + PPF | Death benefit | Term Insurance premium + Equity Mutual Fund | Death benefit |
| 35 | 1 | -1,00,000 | 10,00,000 | -1,00,000 | 10,00,000 |
| 36 | 2 | -1,00,000 | 10,00,000 | -1,00,000 | 10,00,000 |
| 37 | 3 | -1,00,000 | 10,00,000 | -1,00,000 | 10,00,000 |
| 38 | 4 | -1,00,000 | 10,00,000 | -1,00,000 | 10,00,000 |
| 39 | 5 | -1,00,000 | 10,00,000 | -1,00,000 | 10,00,000 |
| 40 | 6 | -1,00,000 | 10,00,000 | -1,00,000 | 10,00,000 |
| 41 | 7 | -1,00,000 | 10,00,000 | -1,00,000 | 10,00,000 |
| 42 | 8 | -1,00,000 | 10,00,000 | -1,00,000 | 10,00,000 |
| 43 | 9 | -1,00,000 | 10,00,000 | -1,00,000 | 10,00,000 |
| 44 | 10 | -1,00,000 | 10,00,000 | -1,00,000 | 10,00,000 |
| 45 | 11 | 0 | 10,00,000 | 0 | 10,00,000 |
| 46 | 12 | 0 | 10,00,000 | 0 | 10,00,000 |
| 47 | 13 | 0 | 10,00,000 | 0 | 10,00,000 |
| 48 | 14 | 0 | 10,00,000 | 0 | 10,00,000 |
| 49 | 15 | 0 | 10,00,000 | 0 | 10,00,000 |
| 50 | 16 | 0 | 10,00,000 | 0 | 10,00,000 |
| 51 | 17 | 0 | 10,00,000 | 0 | 10,00,000 |
| 52 | 18 | 0 | 10,00,000 | 0 | 10,00,000 |
| 53 | 19 | 0 | 10,00,000 | 0 | 10,00,000 |
| 54 | 20 | 0 | 10,00,000 | 0 | 10,00,000 |
| 55 | 27,43,322 | 50,72,011 | |||
| IRR | 6.61% | 10.74% | |||
PPF Investment: With a minimum contribution of ₹500 annually for 15 years, and adjustments made to meet PPF regulations due to the 10-year premium payment term, the final maturity value reaches ₹27.43 lakhs, yielding an IRR of 6.61%.
Equity mutual fund Investment: After accounting for capital gains tax at redemption, the post-tax maturity value stands at ₹50.72 lakhs (pre-tax value: ₹56.46 lakhs), delivering an overall IRR of 10.74% (post-tax).
| Equity Mutual Fund Tax Calculation | |
| Maturity value after 20 years | 56,46,584 |
| Purchase price | 9,25,000 |
| Long-Term Capital Gains | 47,21,584 |
| Exemption limit | 1,25,000 |
| Taxable LTCG | 45,96,584 |
| Tax paid on LTCG | 5,74,573 |
| Maturity value after tax | 50,72,011 |
The substantial gap in maturity value is primarily driven by the power of compounding, which becomes increasingly impactful over extended periods.
In bundled insurance-investment products, a portion of the premium is absorbed by structural costs and internal allocations, reducing the effective investible amount. This weakens the compounding potential.
By separating insurance from investment, you achieve:
- Adequate life coverage at a minimal cost
- Greater flexibility in investment decisions
- Higher return potential
- A significantly larger corpus for long-term goals
This alternative investment strategy demonstrates superior capital efficiency and stronger wealth accumulation potential compared to the bundled structure of the Ageas Federal Easy Save Plan.
Final Verdict on Ageas Federal Easy Save Plan
The Ageas Federal Easy Save Plan offers guaranteed benefits, payable either as a lump sum or in the form of regular income. However, its return profile is relatively weak—significantly lower than many conventional debt instruments—making it unsuitable as a long-term wealth creation vehicle.
In addition, the life cover provided under the plan is insufficient when evaluated against standard protection requirements.
While the plan facilitates disciplined savings, it does not generate an adequate corpus to meaningfully support major life goals and it also has a high agent commission.
Despite being positioned as a product with assured benefits, it remains a conventional traditional insurance policy without any distinctive value proposition. It does not stand out either as an efficient insurance solution or as a competitive investment avenue.
Life insurance plays a critical role in financial planning by acting as a safety net for dependents. A pure-term life insurance policy delivers substantially higher risk coverage at a lower cost.
Simultaneously, achieving long-term financial goals requires constructing a well-diversified investment portfolio that aligns with evolving needs and risk tolerance.
Do Quora, Facebook, and Twitter have the final say when it comes to financial advice?
Selecting appropriate financial products is fundamental to effective financial planning. If clarity is required in evaluating suitable options, consulting a Certified Financial Planner can provide structured guidance and help design a robust, goal-oriented investment strategy.
Leave a Reply